Is There A Stable Long-run Relationship Between Unemployment And Productivity?

Is There A Stable Long-run Relationship Between Unemployment And Productivity?

This paper assesses whether productivity and unemployment have a stable long-run relationship. We explore a panel of 19 OECD countries between 1970 and 2012 and rely on recently developed time series econometric methods. Our findings suggest that unemployment and productivity are non-stationary in l...

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Bibliographic Details
Main Author: João Tovar Jalles
Format: Article
Language:English
Published: Lodz University Press 2015-06-01
Series:Comparative Economic Research
Subjects:
stationarity
structural breaks
cointegration
dols
granger causality
Online Access:https://czasopisma.uni.lodz.pl/CER/article/view/7069
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spelling doaj-d4e6c0bc48eb4930802b385625690ad82021-09-02T10:45:30ZengLodz University PressComparative Economic Research1508-20082082-67372015-06-01182577510.1515/cer-2015-00127069Is There A Stable Long-run Relationship Between Unemployment And Productivity?João Tovar Jalles0Center for Globalization and Governance, Nova School of Business and Economics, PortugalThis paper assesses whether productivity and unemployment have a stable long-run relationship. We explore a panel of 19 OECD countries between 1970 and 2012 and rely on recently developed time series econometric methods. Our findings suggest that unemployment and productivity are non-stationary in levels and in many individual cases these series are cointegrated, even after accounting for possible structural breaks. For many individual countries the long-run effect seems to be generally positive. There is also evidence of two-way causality, but the stronger directional relationship runs from unemployment to productivity.https://czasopisma.uni.lodz.pl/CER/article/view/7069stationaritystructural breakscointegrationdolsgranger causality
collection DOAJ
language English
format Article
sources DOAJ
author João Tovar Jalles
spellingShingle João Tovar Jalles
Is There A Stable Long-run Relationship Between Unemployment And Productivity?
Comparative Economic Research
stationarity
structural breaks
cointegration
dols
granger causality
author_facet João Tovar Jalles
author_sort João Tovar Jalles
title Is There A Stable Long-run Relationship Between Unemployment And Productivity?
title_short Is There A Stable Long-run Relationship Between Unemployment And Productivity?
title_full Is There A Stable Long-run Relationship Between Unemployment And Productivity?
title_fullStr Is There A Stable Long-run Relationship Between Unemployment And Productivity?
title_full_unstemmed Is There A Stable Long-run Relationship Between Unemployment And Productivity?
title_sort is there a stable long-run relationship between unemployment and productivity?
publisher Lodz University Press
series Comparative Economic Research
issn 1508-2008
2082-6737
publishDate 2015-06-01
description This paper assesses whether productivity and unemployment have a stable long-run relationship. We explore a panel of 19 OECD countries between 1970 and 2012 and rely on recently developed time series econometric methods. Our findings suggest that unemployment and productivity are non-stationary in levels and in many individual cases these series are cointegrated, even after accounting for possible structural breaks. For many individual countries the long-run effect seems to be generally positive. There is also evidence of two-way causality, but the stronger directional relationship runs from unemployment to productivity.
topic stationarity
structural breaks
cointegration
dols
granger causality
url https://czasopisma.uni.lodz.pl/CER/article/view/7069
work_keys_str_mv AT joaotovarjalles isthereastablelongrunrelationshipbetweenunemploymentandproductivity
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